Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
6 `/ o5 M6 a# U9 ^6 \expect much from Crude Oil producers and future is not with the
$ ^" H: E! E2 I+ ~# Jcompanies producing Jet fuels but Biofuels. Also no wonder if some of
6 a. p4 D6 I* sthese oil producer will go bankrupt or out of the business even if
% Y8 q/ [, b  Bcrude prices improves. This implies also to good names such as Shell,
6 L* o8 w  y8 }9 i# k& TEXXON, BG, BP, Cheveron ....xyz.. oils

& @3 [; E0 o* [0 l# G- Y4 O. }Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
9 ^1 F1 {+ }* k% e; [1 zleast $50.00 per barrel. Today, oil price declined by a record amount.
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8 l" _9 g8 T5 p: o& NThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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6 L, {% r. [0 }8 g- H1. New oil has been found in Canada, Montana, North & South Dakota and
) C4 G8 c5 _9 ]" ain the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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! y( j  y+ t' e1 L& [$ ~3 U2. New natural gas has been found in Pennsylvania and West Virginia.
% x# r; I* X' l6 K( o5 |: ?; x; P( B2 jThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
3 `' j- e+ z( |( @being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
* [5 D. j! g: I* ]" T) bpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
# U" A7 H( G9 Y8 N8 a) e* b- lto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
" M% o6 L0 b; a+ N6 W! Qexpected to be built in the future. Much of the energy they produce
8 d1 g  Z# ]' z. a- jwill replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
! m+ {" I0 C4 k4 j5 [with new more fuel efficient equipment. Airlines and railway companies
) Z6 k' A6 B2 care experiencing 20% to 25% better fuel econony with the new
equipment.

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5 m% x7 U4 u- A: D7 x7 @$ _Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
6 F1 \4 h) J* B# J& o- zcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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5 M: B* X( n+ G( T/ V: m9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
# M% }6 N0 A6 \: y! qoil wells.

) _' O" g. O; u, m5 ?( S' u( @
8 N& c# ~. r! Q: z8 k+ \10. Solar, wind and ocean energy is displacing oil as an energy
$ w& C1 O3 @  s" tsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
8 l1 x( ~  C% `, rprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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4 K/ z" {6 Y/ \8 nWith the above scenario, I still believe that there are under
, P* i1 j1 ^/ h( `6 n9 aperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
, m: h" D. S! z6 N. p1 J% I9 B2009 ... FYI-Only